Citibank Korea sponsors climate action conference for sustainable society

Citibank Korea CEO Yoo Myung-soon gives congratulatory remarks at the "3rd Climate Action Conference," held online, March 15. Courtesy of Citibank Korea

Conference looks into transformation to low-carbon economy amid the climate crisis

By Yoon Ja-young

Citibank Korea and Citi Foundation announced sponsorship of the "3rd Climate Action Conference," which was held online on March 15. The event was hosted by WWF-Korea with the participation of experts and representatives from a variety of sectors, including the Ministry of Environment, the British Embassy Seoul, corporations, international organizations, academia and civil society groups, to share their knowledge on climate crisis responses.

The conference, titled "Transformation to Low Carbon Economy in the Climate Crisis Era: Present and Future," contemplated Korea's awareness of, and response to, the climate crisis under its recently-unveiled 2050 Net-Zero target as well as economic transformation directions, while discussing the nation's role and opportunities as a new climate leader.

With the participation of experts and representatives from a variety of sectors, including the Ministry of Environment, corporations, international organizations and civil society groups, the conference also looked at global leadership from governance and market and finance perspectives to step up responses to the climate crisis, while discussing measures on how Korea can strengthen its climate actions.

Extreme weather events that swept the world last year, like heat waves, floods and cold snaps, have raised the need for more practical and professional execution plans to respond to the climate crisis. Under such circumstances, measures on how Korea can become a climate leader on the global stage were on the table.

"Citi has announced a 2025 Sustainable Progress Strategy at the global level with a focus on three key areas ― Low-Carbon Transition, Measuring Climate Risks and Sustainable Operations ― as part of its efforts to respond to the climate crisis era," Citibank Korea CEO Yoo Myung-soon said in her congratulatory remarks.

"Under its strategic goal of becoming the 'Best ESG Bank,' Citibank Korea has expanded ESG finance while organizing an ESG Council to help create a sustainable society. We remain committed to supporting stronger climate action," she added.

During the first session of the conference, Mark Buttigieg, counsellor of the British Embassy Seoul, spoke about the climate leadership of the U.K. as well as the Glasgow Climate Pact, reached at the 2021 United Nations Climate Change Conference (COP26). Then, Dr. Frank Rijsberman, director general at the Global Green Growth Institute (GGGI), gave a presentation on international cooperation and the role of Korea in achieving carbon neutrality. In addition, Kim Beop-Jung, deputy minister of the Climate Change and Carbon Neutral Policy Office at the Ministry of Environment, shared information relating to global trends and domestic policies to overcome the climate crisis.

The second session featured presentations by high-ranking officials from government, academia and research institutes on the role of the public sector to respond to the climate crisis. The speakers shared ongoing discussions on, and the current status of, the transition to a low-carbon society in Korea. Jean-Marc Champagne from WWF-International explained the concept of "Bankable Nature Solutions" and related projects, which mobilize private sector investment into sustainable development projects that not only build more climate-resilient ecosystems, but are also financially viable enough to be scaled up and replicated.

The third session introduced efforts in the private sector for industrial transformation. Presentations were given by representatives from a global asset management company, a financial firm, a university and a research institute on domestic and international industrial trends, net-zero execution plans, the role and examples of finance in the climate crisis era, and areas that companies should focus on while putting net-zero plans into action.

In particular, Valerie Smith, Chief Sustainability Officer at Citigroup, introduced Citigroup's priority ESG areas: commitment to $1 trillion in sustainable finance and net zero by 2050, under the title, "Efforts to realize sustainable finance ― Citigroup's global-level actions for sustainable finance." She said that when it is implementing net-zero plans, Citigroup will cooperate with customers continuously to support their short- and long-term plans and provide finance to help them to achieve the transition to net-zero emissions.

In line with Citigroup's efforts, Citibank Korea has continuously expanded ESG finance and related activities. As the sole coordinator, the bank provided advice on syndicated bonds worth $2 billion to a consortium of domestic construction companies for a project to build the Panama Metro Line 3. The metro, which could carry 160,000 passengers annually, is expected not only to improve the quality of life for ordinary citizens but also to eliminate 20,000 tons of carbon dioxide emissions annually. In this regard, it is considered a classic example of green financing for ESG management as well as an exemplary deal in the financial market, backed up by the fact that it was recognized in the Deals of the Year Awards by LatinFinance.

In addition, sole coordinator Citibank Korea, in collaboration with Korea Trade Insurance Corporation (K-SURE), closed a 430-million-euro syndicated loan facility in February 2022 for Hanwha Solutions' investment in renewable energy projects in Europe, which demonstrates the bank's continuous expansion of support for Korean companies' direct investment in domestic and overseas green industries.

Citibank Korea added that it will continue its efforts for net-zero emissions and market transformation, including holding a roundtable with WWF-Korea through a climate action partnership, climate action supporter and publishing related research reports.

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